Slide 1: Sprott Inc. Q1 2021 Results
Sprott Inc. Q1 2021 Results May 7, 2021
Slide 2: Forward-looking Statements
Forward-looking Statements Certain statements in this presentation or the accompanying oral remarks contain forward-looking information and forward-looking statements (collectively referred to herein as the "Forward-Looking Statements") within the meaning of applicable Canadian and U.S. securities l
Slide 3: Speakers
Speakers Peter Grosskopf, Whitney George, CEO, President, Sprott Inc. Sprott Inc. John Ciampaglia, Kevin Hibbert CEO, CFO, Sprott Asset Sprott Inc. Management Sprott Inc. | 3
Slide 4: Q1 and YTD 2021 Highlights
Q1 and YTD 2021 Highlights • Continuing to deliver strong financial results despite pullback in precious metal prices during Q1 o Gold and silver have rebounded in Q2 as treasury yields have retreated o Precious metals equities performing better • Physical Trusts continue to expand client base and c
Slide 5: AUM Summary
AUM Summary • AUM was $17.1 billion as at March 31, 2021, down $0.3 billion (2%) from December 31, 2020. Subsequent to the quarter end, estimated AUM at May 4 was $18.2 billion* AUM (in $billions) * Estimated AUM is based on updated May 4th figures for daily priced funds in exchange listed products
Slide 6: Segment Results
Segment Results • Adjusted base EBITDA in the quarter was $14.6 million ($0.59 per share), up 78% or $6.4 million ($0.26 per share) from Q1 2020 EBITDA (in $millions) (1) Net of corporate, consolidation, elimination, and non-reportable segments. See Note 11 of the interim condensed consolidated fina
Slide 7: Physical Bullion Trusts
Physical Bullion Trusts • Sharp sales rebound in Q1 2021: $1.22B, despite weakness in metals • Physical Silver Trust (PSLV) accounted for most of inflow: $1.15B • Q2 sales to date* remain solid: ~$220MM Physical Trust Sales (in millions) Total Physical Trust AUM 2020 YTD Physical $856Trust Sales (in
Slide 8: Silver Lining
Silver Lining • Investor interest in physical silver has been surging in 2021 • PSLV attracting significant interest and inflows due to 100% physical silver backing with preferred storage at Royal Canadian Mint • PSLV market share has increased materially this year PSLV AUM (in $billions) PSLV vs. S
Slide 9: UPC Acquisition
UPC Acquisition • Sprott announced the acquisition of the management contract for Uranium Participation Corp. and launch of the Sprott Physical Uranium Trust o Expected to add~US$500MM in AUM • Transaction is subject to shareholder approval and is expected to close in early Q3 • Upon completion of t
Slide 10: UPC Transaction Rationale
UPC Transaction Rationale • Uranium is an ideal complement to our existing physical trusts o UPC is the world’s largest public physical uranium vehicle • Sprott believes uranium is entering a new upcycle after a long bear market • Expected to appeal to Sprott’s 200,000+ client base IMF World Uranium
Slide 11: Managed Equities
Managed Equities • Tough Q1 for gold equities but performance has rebounded in Q2 • Redemptions have slowed and the segment recorded modest Q1 net sales • Targeting new institutional business with SMAs • Added Silver Equities SMA on Sprott USA platform to meet growing interest • Expanding sales and
Slide 12: Private Strategies
Private Strategies • Private strategies continue to perform well and add capital commitments o Current AUM is ~$1B • LF1 now largely wound up o Team focused on deploying LF2 capital • Streaming strategy has been very active in 2021 o Multiple additional transactions in pipeline Sprott Inc. | 12
Slide 13: Summary
Summary • Continuing to deliver strong financial results o Second consecutive quarter of Adjusted Base EBITDA surpassing previous historic high recorded in 2011 o AUM reached new highs in May 2021 • Business is positioned for a sustained bull market in precious metals and related commodities o Expan
Slide 14: Supplemental Financial Information
Supplemental Financial Information
Slide 15: Revenues
Revenues Q1 Q1 In millions $ 2021 2020 Total Net Revenues 27.9 14.9 Key revenue highlights: Net fees (1) 24.7 14.9 Net commissions (1) 6.3 3.3 Finance income 1.2 0.9 Gain (loss) on investments (4.7) (4.4) (1) See the key performance indicators (non-IFRS financial measures) section of the MD&A. Sprot
Slide 16: Expenses
Expenses Q1 Q1 In millions $ 2021 2020 Total Expenses 21.9 11.9 Key expense highlights: Net compensation (1) 11.8 7.6 Selling, general & administrative 3.4 3.5 (1) See the key performance indicators (non-IFRS financial measures) section of the MD&A. Sprott Inc. | 16
Slide 17: EBITDA Reconciliation
EBITDA Reconciliation Q1 Q1 In millions $ (except for per share amounts) 2021 2020 Net Income 3.2 1.1 Per share (1) 0.13 0.04 Adjustments: Interest expense 0.4 0.2 Provision for income taxes 2.7 1.9 Depreciation and amortization 1.1 1.0 EBITDA 7.4 4.2 Other Adjustments: (Gain) loss on investments 4.